House-to-Home Renovation Loans Offer Options for Agents and Home Buyers

If you’ve been house hunting—or if you’re an agent with a listing that needs work—you’ve probably been there: A home has great bones or offers a lot of space for the money, but some aspects of its condition are likely to frighten most buyers away. With a unique financing option available for homes in need of renovation, however, the property might actually be more desirable than you think.

Our House-to-Home renovation program is designed to make mortgage financing for properties in disrepair more accessible by combining the estimated costs of repairs and the home's purchase price into a single loan. Renovation financing can help home buyers turn a house they like into a home they love, and our loan options may help real estate agents present possibilities in a property, leading to a sale.

The House-to-Home renovation program offers a number of advantages:

The program offers a 30-year mortgage with a fixed interest rate that will remain the same for the life of the loan.

Purchase and rate-term refinancing options are available.

Unsafe homes can be made habitable, which can help improve the neighborhood.

Buyers may be able to get more house for the money and cover improvement costs.

The square footage of homes can be increased at a lower cost.

Agents can offer a greater inventory and close more sales.

There are two common types of renovation loans: The FHA 203(k) loan programs for properties that won't need structural repairs, and a conventional loan program for properties that do need structural work. Most types of home improvements are covered with the exception of "luxury" features such as swimming pools or landscaping.

If you choose to purchase, refinance, or market a home that may be eligible for 203k financing, having knowledgeable mortgage professionals to assist you is important. Whether you are a first-time home buyer or an experienced real estate professional, our renovation specialists can help you find the right renovation loan program for your needs.

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Florida, Georgia, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

Want instant access to home financing tools and information? We have a mobile app with several features designed to help make the home loan process simpler and more convenient for our clients. From the moment you submit your home loan application to the moment you reach settlement, this app is on your time!

To download our app, you can ask your mortgage consultant to share it with you directly, or you can find it on the Apple App Store and on the Android App Store. You can also search for “Prosperity Home Mortgage App” on your mobile device, choose your local mortgage consultant from the list presented to you, and download for instant access to our home financing tools:

Securely pre-qualify for mortgage financing right on their mobile device.

If you’re in the market for a home, probably the very first step you’re going to take is determining your price range. And unless you’ve got a nice nest egg in the bank, that amount is going to come down to the monthly mortgage payment you can afford to make.

Or is it?

The mistake many homebuyers make - especially first-time buyers - is only taking the mortgage payment into consideration when deciding the price of the home they can afford. In reality, however, a lot of other expenses need to be factored into your monthly costs as a homeowner before you settle on the price range. So in addition to your monthly mortgage payment, make sure to calculate these other costs and add them into your budget before you start shopping for your dream home:

Utilities: The bigger the house, the more you will spend on electric, heat, internet, etc; make sure you have an idea of these costs based on square footage. Your real estate agent should be able to provide you with these estimates

Taxes: Property taxes vary among cities, counties and states, so hone up on these differences and factor them into how much home you can afford based on where you want to live.

Insurance: Do some research and get a realistic price range on what homeowners insurance is going to cost you for the type of home and properties you’re looking at.

Repairs and maintenance: Are you looking at older homes or new construction? The former may save you money on the purchase price, but you’ll need to increase your budget for repairs and maintenance in the short and long term.

Landscaping: If a big yard is one of your must-haves, make sure you’re budgeting for landscaping costs, or are ready, willing and able to do the work yourself.

Furniture and design: Is your heart set on furnishing and designing the interior of your home to perfection? Or are you willing to live with a slightly outdated kitchen and your old apartment furniture for a few years while you slowly chip away at improvements? Make this decision up front as it will factor into how much you can afford on the purchase price.

While taking the above into consideration may mean looking for a home in a lower price range, you’ll be better off in the long-run - living in a home you can comfortably afford and enjoy.

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Florida, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

So you have decided to buy a home, but you are looking for a mortgage option with a low down payment, flexible sources of funds, and no income restrictions. Good news! In certain states, Prosperity Home Mortgage, LLC (Prosperity) now offers HomeSense, a program that may make sense for home buyers like you.1 HomeSense presents a responsible path to homeownership for first-time home buyers and low-to-moderate income borrowers that includes stable fixed-rate options.

Here are some advantages of HomeSense:

No income restrictions

Flexible down payment sources with as little as 3% down

Down payment does not need to be from borrower’s own funds

Reduced, cancelable Mortgage Insurance (MI)

No credit score required with a 5% down payment

Boarder/Rental income allowed

Up to 6% interested party contributions allowed

“As a mortgage company, we are committed to offering stable, responsible financing options to our customers,” said Tim Wilson, president and CEO of Prosperity. “That’s why we are pleased to offer HomeSense—a competitive, fixed-rate loan that matches a variety of clients’ needs and helps prospective home buyers become more confident about jumping into the housing market.”

In addition to a low down payment and fixed interest rate, qualified buyers who choose HomeSense financing will also have an opportunity to receive homeownership education and counseling to help them prepare for the responsibility of owning a home.

Randy Krout, president of sales at Prosperity, expanded on Wilson’s thoughts. “For customers who have limited credit or funds, making sure they are comfortable with their monthly mortgage payment is our top priority,” said Krout. “HomeSense may be a great opportunity for certain customers to obtain financing and enjoy homeownership for years to come.”

HomeSense may not be the best mortgage product for all borrowers. Please consult your mortgage consultant to discuss your financing options.

1. HomeSense is available in Florida, Georgia, Maryland, North Carolina, Pennsylvania, and Virginia only. Ask a mortgage consultant for the maximum loan amount in your area.

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Florida, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

Great news! Prosperity Home Mortgage, LLC, (Prosperity) has once again been ranked as one of the top mortgage companies in the nation, according to the Scotsman Guide, the leading resource for mortgage originators. Prosperity, a full service mortgage banker that specializes in residential and refinance loans, earned the 43rd position on the Scotsman Guide’s Top Mortgage Lenders 2017 list, as ranked by overall volume.

Prosperity was ranked among entries from hundreds of mortgage companies across the country. To be eligible for consideration in rankings, all loan volume had to be from mortgages on one- to four-unit residential properties within the United States. No commercial or international loans were included. After receiving submissions, Scotsman Guide required written verification of top entrants’ volume from a certified public accountant, the chief financial officer at the company or a similar source.

“It’s a tremendous honor for our company and our team to have been recognized by the Scotsman Guide as one of the top mortgage companies in the United States,” said Tim Wilson, president and CEO of Prosperity. “I’m exceptionally proud of our team, and I’m confident that with our continued commitment to providing personalized and focused service to each and every Prosperity customer, we’ll remain among the top lenders in the nation for years to come.”

Prosperity is committed to setting the highest standard for customer service and consistently exceeding our clients’ expectations. Whether you are a home buyer, homeowner or real estate professional, we are ready to help guide you every step of the way to help ensure your home financing process with us is a smooth one.

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Florida, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.